CNPE APPROVES REDUCTION OF ROYALTIES FOR INDEPENDENT PRODUCERS AND EXPANDS THE RANGE OF BLOCKS ELIGIBLE TO PERMANENT OFFER

 

Jun 5, 2020

Important news for the oil and gas sector from Brasilia. The National Energy Policy Council (CNPE) approved incentives for small and medium-sized companies in the exploration, development and production of oil and natural gas. The collegiate also gave the approval for the National Petroleum Agency (ANP) to define and bid blocks in any land or sea basins in the Permanent Offer system.

Regarding incentives to independent oil companies, CNPE approved a resolution for the ANP to evaluate the adoption of measures, aiming at reducing royalties to up to 5%, for fields granted to small or medium-sized companies. The council also recommends that the agency carry out studies and actions aimed at defining and implementing any incentives for these companies.

The reduction in royalties was an old claim of the sector and the endorsement of CNPE was cause for celebration by representatives and members of this segment. “Today is a historic day for the Brazilian onshore. We have an agenda [of claims] of more than a decade and this was one of the main points ”said the executive secretary of the Brazilian Association of Independent Petroleum Producers (Abpip), Anabal Santos Júnior.

“Today is a day to thank Minister Bento Albuquerque, the MME oil and gas secretary, José Mauro, and the studies of the ANP, and the various companies, people and associations that have always supported this banner”, celebrated the president. “We are now going on a more definitive agenda in relation to this matter, so that the ANP can implement this measure quickly,” he added.

PERMANENT OFFER MAY RECEIVE ANY BLOCK

The CNPE also approved a resolution that authorizes the ANP to define and bid on blocks in any land or sea basins in the Permanent Offer system. In addition, fields returned or in the process of being returned may be included in the bidding process. The fields or blocks in the pre-salt area, the blocks located on the Continental Shelf in addition to the 200 nautical miles, the blocks authorized for the 17th Round and the sectors indicated for the 18th Round will be left out.

“The measure aims to boost the offer of areas for exploration and production of oil and natural gas in Brazil, considering that in the Permanent Offering system the areas are permanently available to the market, allowing companies to carry out their studies in their time, without relying on a pre-established calendar by the government ”, explained the Ministry of Mines and Energy.

Source: PetroNoticias

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